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Ford Motor Co. says it is dropping its plan to build a $1.6-billion US plant in Mexico, a plan criticized by Donald Trump during last year's presidential primary campaign.

Ford also announced it plans to invest about $700 million in a Michigan factory that will build high-tech autonomous and electric vehicles.

The company said it will add 700 direct new jobs at its Flat Rock (Michigan) Assembly Plant, which will build a small sport utility vehicle with extended battery range, a fully autonomous vehicle for ride-hailing or ride-sharing, and the Ford Mustang and Lincoln Continental.\